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The Upfront Deposit Checklist: Never Start Work Unfunded (Small Teams)

A two-person design studio I know ran the numbers on their prior year and found six jobs cancelled after work had already started — an average of $1,900 of unbilled hours each, $11,400 donated to clients who went quiet. Average time-to-payment on the jobs that survived: 47 days.

Nothing about their work was wrong. The order of operations was: work first, money maybe.

The 50/50 rule

Default: 50% on signature, 50% on delivery, before files are handed over. Adjust on shape, not charm:

  • Under ~$1,500: 100% up front — chasing a second payment costs more than the second payment.
  • Phased projects: 40% to start, 40% at first milestone, 20% on delivery. Nobody carries more than one phase of risk.
  • Retainers: first month up front, always, invoiced with the signature.
  • Big-company 30-day terms: accept them as the price of the logo, and price the float into the job.

Write the schedule onto the quote itself

A deposit asked later is a negotiation; a deposit written into the quote is administration:

Payment schedule: 50% ($2,400) reserves your project slot and is due with signature; the balance ($2,400) is due on delivery, before handover. Work begins when the first payment clears. Card link below — takes two minutes.

Three details that make it work:

  1. The payment link sits inside the quote, next to the schedule. The fewer hops between "yes" and "paid," the higher the deposit rate.
  2. "Reserves your slot" is the phrase that sells it. The deposit buys something the client wants — a place on a finite calendar — not a security deposit they tolerate.
  3. "Work begins when the deposit clears" — one sentence in the quote, repeated in the kickoff email. A soft version fills your calendar with unfunded work.

The two-sentence script for clients who resist

"That's our standard schedule — half to reserve the slot, half on delivery. If it's easier on your side, we can split it into three milestones so each payment tracks a delivery you've seen."

It never apologizes, it offers a shape alternative (milestones) rather than a size concession, and it gives the client an easy yes. If they still hesitate: milestone split → platform escrow → walk away. A client who won't put money behind the project at any shape has answered the qualification question for you.

The earned-deposit cancellation line

State the deposit's fate at signature, in one line: refundable minus booking fee before work starts; earned against work performed once work starts, remainder refunded in five business days. A cancellation policy written at signature is a fact; the same policy raised at invoice time is an argument.

One quarter later

Same studio: deposit rate 100% of new jobs (the schedule was simply on the quote with a card link — nobody ever had to be persuaded), cancelled jobs six a year → one (and that one's deposit covered the lost slot), time-to-first-payment 47 days → 3. One prospect walked at the deposit line — which is also information.


The full checklist — milestone shapes, the earned-deposit line, the five weekly numbers led by unfunded kickoffs — lives on the ops notes site: Upfront Deposit Checklist.

The incident-response half of small-team ops:

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